Systems and methods for performing person-to-person transactions using active authentication

ABSTRACT

In some embodiments, a method of performing a person-to-person financial transaction includes receiving an active authentication transaction key at a mobile financial transaction instrument of a transferor from a financial institution, storing the active authentication transaction key in a non-transient machine-readable storage medium of the mobile financial transaction instrument of the transferor, and transferring the active authentication transaction key to a mobile financial transaction instrument of a transferee for completion of the person-to-person financial transaction using wireless transmission.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application claims priority to U.S. Patent Application Ser. No.61/452,910, filed Mar. 15, 2011, the entirety of which is incorporatedby reference herein.

FIELD

The disclosed systems and methods relate to financial transactions. Morespecifically, the disclosed systems and methods relate to financialtransactions in which three entities are actively engaged inauthenticating a transaction.

BACKGROUND

Conventional financial transactions utilize numbers that are assigned tocards or other payment devices (e.g., fobs), then to banks, and finallyto a consumer. These numbers and their keys (card verification codes)are easily stolen and manipulated. The infrastructure supporting thesefinancial transactions was developed and built on technology from half acentury ago and has not substantially evolved.

Additionally, the financial transactions involving these number-basedpayment devices are linear transactions that only occur between twoactive participants: the merchant and the financial institution. Forexample, when a credit card is used to pay for merchandise, the merchanttransmits the credit card information to the issuing bank, whichapproves or declines the transaction based on a status of the account ofthe party presenting credit card. However, a single transaction may passthrough 3 or more systems for validation. Merchant processors,aggregators, card association systems, and other systems may processdata along the way, but do not take part in the authorization of thetransaction. Instead, these intermediaries merely add unneededcomplexity, unnecessary cost, increased processing time, and an increasein risk for a given transaction.

SUMMARY

In some embodiments, a method of performing a person-to-person financialtransaction includes receiving an active authentication transaction keyat a mobile financial transaction instrument of a transferor from afinancial institution, storing the active authentication transaction keyin a non-transient machine-readable storage medium of the mobilefinancial transaction instrument of the transferor, and transferring theactive authentication transaction key to a mobile financial transactioninstrument of a transferee for completion of the person-to-personfinancial transaction using wireless transmission.

In some embodiments, a system includes a non-transient machine-readablestorage medium, a first communication interface configured to receive anactive authentication transaction key for performing a peer-to-peerfinancial transaction from a financial institution via a wirelessnetwork, a second communication interface configured to transmit andreceive signals via a wireless transmission protocol, and a processorcoupled to the non-transient machine-readable storage medium and to thefirst and second communication interfaces. The processor is configuredto store the active authentication transaction key in the non-transientmachine-readable storage medium and cause the second communicationinterface to transmit the active authentication transaction key to amobile financial transaction instrument of a transferee for use incompleting the peer-to-peer financial transaction via the wirelesstransmission protocol.

In some embodiments, a non-transient machine-readable storage medium isencoded with program code, wherein when the program code is executed bya processor, the processor performs a method. The method includesstoring an active authentication transaction key for performing apeer-to-peer financial transaction received from a financial institutionvia first communication interface in a non-transient machine-readablestorage medium and causing a second communication interface to transmitthe active authentication transaction key to a mobile financialtransaction instrument of a transferee for completing the peer-to-peerfinancial transaction via a wireless transmission protocol.

BRIEF DESCRIPTION OF THE DRAWINGS

These and other features and advantages of the present invention will bemore fully disclosed in, or rendered obvious by the following detaileddescription of the preferred embodiments of the invention, which are tobe considered together with the accompanying drawings wherein likenumbers refer to like parts and further wherein:

FIG. 1 is a block diagram of one example of a network for performingfinancial transactions;

FIG. 2 is one example of an architecture of a mobile financialtransaction instrument for performing financial transactions;

FIG. 3A is a flow chart of one example of a dynamic or activeauthentication method;

FIG. 3B is a flow chart of one example of a method performed by a mobilefinancial transaction instrument during a financial transactionutilizing active authentication;

FIG. 3C is a flow chart of one example of a method performed by afinancial institution during a financial transaction utilizing activeauthentication;

FIG. 3D is a flow chart of one example of a method performed by apoint-of-sale device of a merchant during a financial transactionutilizing active authentication;

FIGS. 4A and 4B illustrate are flow charts of one example of a method ofwiring funds to a third party using active authentication;

FIG. 4C is a flow chart of one example of the functions performed by acomputer or mobile financial transaction instrument used by a transferorduring a fund transfer method in accordance with FIGS. 4A and 4B;

FIG. 4D is a flow chart of one example of the functions performed by afinancial institution in accordance with the fund transfer methodillustrated in FIGS. 4A and 4B;

FIG. 4E is a flow chart of one example of the functions performed by anATM in accordance with the fund transfer method illustrated in FIGS. 4Aand 4B;

FIG. 5A illustrates the flow of data in one example of an improved ATMtransaction;

FIG. 5B is a flow chart of one example of the functions performed by amobile financial transaction instrument in accordance with the ATMtransaction illustrated in FIG. 5A;

FIG. 5C is a flow chart of one example of the functions performed by afinancial institution in accordance with the ATM transaction illustratedin FIG. 5A;

FIG. 5D is a flow chart of one example of the functions performed by anATM in accordance with the ATM transaction illustrated in FIG. 5A;

FIGS. 6A and 6B are flow charts of one example of a method of performinga person-to-person transaction using active authentication;

FIG. 6C is a flow chart of one example of the functions performed by atransferor's mobile financial transaction instrument in accordance withthe person-to-person transaction illustrated in FIGS. 6A and 6B;

FIG. 6D is a flow chart of one example of the functions performed by thetransferor's financial institution during a person-to-person financialtransaction in accordance with FIGS. 6A and 6B;

FIG. 6E is a flow chart of one example of the functions performed by atransferee's mobile financial transaction instrument in accordance withthe person-to-person transaction illustrated in FIGS. 6A and 6B; and

FIG. 6F is a flow chart of one example of the functions performed by atransferee's financial institution in accordance with theperson-to-person transaction illustrated in FIGS. 6A and 6B.

DETAILED DESCRIPTION

The disclosed systems and methods for performing financial transactionsprovide enhanced security compared to conventional methods byeffectively eliminating the need to assign credit/debit card numbersthat are specific to a mobile financial transaction instrument and anindividual. Additionally, the systems and methods for performingfinancial transactions enable non-numeric identifiers to be utilized infinancial transactions such that banks and other financial entities arenot confined to the ISO/IEC 7812 numbering scheme having limited accountnumbers per issuer identification numbers (“IIN”).

FIG. 1 illustrates one example of a plurality of mobile financialtransaction instruments 100-1, 100-2 (collectively referred to as“mobile financial transaction instruments 100”) communicatively coupledto a plurality of networks and devices through network 10. Network 10may be a wide area network (“WAN”), a local area network (“LAN”),personal area network (“PAN”), or the like. In one embodiment, network10 is the Internet and mobile financial transaction instruments 100 areonline. “Online” may mean connecting to or accessing source data orinformation from a location remote from other devices or networkscoupled to Internet 10. Alternatively, “online” may refer to connectingor accessing an electronic network (wired or wireless) via a mobilefinancial transaction instrument 100 or computer 54 as described below.The Internet is a worldwide system of computer networks—a network ofnetworks in which a party at one computer or other device connected tothe network can obtain information from any other computer andcommunicate with parties of other computers or devices. The most widelyused part of the Internet is the World Wide Web (often-abbreviated “WWW”or called “the Web”).

One of the most outstanding features of the Web is its use of hypertext,which is a method for cross-referencing. In most Web sites, certainwords or phrases appear in text of a different color than thesurrounding text. This text is often also underlined. Sometimes, thereare hot spots, such as buttons, images, or portions of images that are“clickable.” Clicking on hypertext or a hot spot causes the downloadingof another web page via a protocol such as hypertext transport protocol(“HTTP”). Using the Web provides access to millions of pages ofinformation. Web “surfing” is done with a Web browser, the most popularof which presently are Apple Safari, Microsoft Internet Explorer, andMozilla Firefox. The appearance of a particular website may varyslightly depending on the particular browser used. Versions of browsershave “plug-ins,” which provide animation, virtual reality, sound, andmusic. Interpreted programs (e.g., applets) may be run within thebrowser.

As shown in FIG. 1, financial institution (“FI”) 20 is coupled tonetwork 10 through firewall 22 that blocks network connections from theoutside world to FI 20 inside the firewall. FI 20 may be a bank, creditunion, or any entity that provides demand deposit accounts, issues orprocesses credit or debit transaction, or the like. It is alsounderstood that firewalls are often governed by a set of rules thatspecify what IP addresses, ports, and even types of traffic are allowedto connect to machines inside the firewall. It is also understood thatother network security defense tools may be employed as part of adefense-in-depth strategy to secure FI 20 including, but not limited to,intranet subnet partitioning, a demilitarized zone, intrusion detectionor host-based intrusion prevention systems.

FI 20 also includes a processing unit 24 coupled to one or more datastorage units 26-1, 26-2 (collectively referred to as “data storageunits 26”). The processing unit 24 provides front-end graphical userinterfaces (“GUIs”), e.g., customer GUI 28, non-customer GUI 30, andback-end GUIs 32 to a remote computer 54 or to local computer 34. TheGUIs can take the form of, for example, a webpage that is displayedusing a browser program local to the remote computers 54 or to localcomputer 34. It is understood that the FI 20 may be implemented on oneor more computers 34, servers 36, or like devices. For example, FI 20may include servers programmed or partitioned based on permitted accessto data stored in data storage units 26. Front-and back-end GUIs 28, 30,32 may be portal pages that include various content retrieved from theone or more data storage devices 26. As used herein, “portal” is notlimited to general-purpose Internet portals, such as YAHOO! or GOOGLEbut also includes GUIs that are of interest to specific, limitedaudiences and that provide the party access to a plurality of differentkinds of related or unrelated information, links and tools as describedbelow. “Webpage” and “website” may be used interchangeably herein.

Remote computers 54 may be part of a computer system network 50 and gainaccess to network 10 through an Internet service provider (“ISP”) 52.Mobile financial transaction instruments 100 may gain access to network10 through a wireless cellular communication network, a WAN hotspot, orthrough a wired or wireless connection with a computer 20 as will beunderstood by one skilled in the art. A merchant 60 including having aplurality of point-of-sale (“POS”) terminals 62 may be connected tonetwork 10. POS terminals 62 may be directly connected to network 10 orbe connected through a gateway 64, which may be a processing devicecoupled to one or more data storage units 66. An automated tellermachine (“ATM”) 70 may also be connected to FI 20 through network 10.

In one embodiment, mobile financial transaction instrument 100 includesany mobile device capable of transmitting and receiving wirelesssignals. For example, a mobile financial transaction instrument mayinclude, but is not limited to, mobile or cellular phones, personaldigital assistants (“PDAs”), laptop computers, tablet computers, fobs,music players, and e-readers, to name a few possible devices. In someembodiments, a mobile financial transaction instrument 100 may be adesktop computer configured to perform financial transaction over anetwork such as the Internet. FIG. 1 is a block diagram of one exampleof an architecture of mobile financial transaction instrument 100. Asshown in FIG. 1, mobile financial transaction instrument 100 may includeone or more processors, such as processor(s) 102. Processor(s) 102 maybe any central processing unit (“CPU”), microprocessor,micro-controller, or computational device or circuit for executinginstructions and be connected to a communication infrastructure 104(e.g., a communications bus, cross-over bar, or network). Varioussoftware embodiments are described in terms of this exemplary mobilefinancial transaction instrument 102. After reading this description, itwill be apparent to one skilled in the art how to implement the methodusing mobile financial transaction instruments that include othersystems or architectures.

Mobile financial transaction instrument 100 may include a display 106that displays graphics, text, and other data received from thecommunication infrastructure 104 (or from a frame buffer not shown) to auser. Examples of such displays 106 include, but are not limited to, LCDscreens and plasma screens, to name a few possible displays. Mobilefinancial transaction instrument 100 also includes a main memory 108,such as a random access (“RAM”) memory, and may also include a secondarymemory 110. Secondary memory 110 may include a more persistent memorysuch as, for example, a hard disk drive 112 and/or removable storagedrive 114, representing a magnetic tape drive, an optical disk drive, orthe like. Removable storage drive 114 reads from and/or writes to aremovable storage unit 116 in a manner that is understood by one skilledin the art. Removable storage unit 116 represents a magnetic tape,optical disk, or the like, which may be read by and written to byremovable storage drive 114. As will be understood by one skilled in theart, the removable storage unit 116 may include a tangible machinereadable storage medium having stored therein computer software and/ordata.

In some embodiments, secondary memory 110 may include other devices forallowing computer programs or other instructions to be loaded intomobile financial transaction instrument 100. Such devices may include,for example, a removable storage unit 118 and a corresponding interface120. Examples of such units 118 interfaces 120 may include a removablememory chip (such as an erasable programmable read only memory(“EPROM”)) programmable read only memory (“PROM”)), secure digital(“SD”) card and associated socket, and other removable storage units 118and interfaces 120, which allow software and data to be transferred fromthe removable storage unit 118 to mobile financial transactioninstrument 100.

Mobile financial transaction instrument 100 may also include a speaker122, a camera 124, a microphone 126, and an input device 128. Examplesof input device 128 include, but are not limited to, a keyboard,buttons, a trackball, or any other interface or device through a usermay input data. In some embodiment, input device 128 and display 106 areintegrated into the same device. For example, display 106 and inputdevice 128 may be touch screen through which a user uses a finger, pen,or stylus to input data into mobile financial transaction instrument100.

Mobile financial transaction instrument 100 also include one or morecommunication interfaces 130, which allows software and data to betransferred between mobile financial transaction instrument 100 andexternal devices such as, for example, a point-of-sale (“POS”) device,an automated teller machine (“ATM”), a computer, and other devices thatmay be locally or remotely connected to mobile financial transactioninstrument 100. Examples of the one or more communication interfaces 130may include, but are not limited to, a modem, a network interface (suchas an Ethernet card or wireless card), a communications port, a PersonalComputer Memory Card International Association (“PCMCIA”) slot and card,one or more Personal Component Interconnect (“PCI”) Express slot andcards, or any combination thereof. The one or more communicationinterfaces 130 may also include a wireless interface configured forshort range communication, such as near field communication (“NFC”),Bluetooth, or other interface for communication via another wirelesscommunication protocol.

Software and data transferred via the one or more communicationsinterfaces 130 are in the form of signals, which may be electronic,electromagnetic, optical, or other signals capable of being received bycommunications interfaces 130. These signals are provided tocommunications interface 130 via a communications path or channel. Thechannel may be implemented using wire or cable, fiber optics, atelephone line, a cellular link, a radio frequency (“RF”) link, or othercommunication channels.

In this document, the terms “non-transient computer program medium” and“non-transient computer readable medium” refer to media such asremovable storage units 116, 118, or a hard disk installed in hard diskdrive 112. These computer program products provide software to mobilefinancial transaction instrument 100. Computer programs (also referredto as “computer control logic”) may be stored in main memory 108 and/orsecondary memory 110. Computer programs may also be received via the oneor more communications interfaces 130. Such computer programs, whenexecuted by a processor(s) 102, enable the mobile financial transactioninstrument 100 to perform the features of the method discussed herein.

In an embodiment where the method is implemented using software, thesoftware may be stored in a computer program product and loaded intomobile financial transaction instrument 100 using removable storagedrive 114, hard drive 112, and/or communications interface 130. Thesoftware, when executed by a processor(s) 102, causes the processor(s)102 to perform the functions of the method described herein. In anotherembodiment, the method is implemented primarily in hardware using, forexample, hardware components such as application specific integratedcircuits (“ASICs”). Implementation of the hardware state machine so asto perform the functions described herein will be understood by personsskilled in the art. In yet another embodiment, the method is implementedusing a combination of both hardware and software.

One skilled in the art will understand that computers 34 and 54, server36, POS devices 62, and ATM 70 (collectively referred to as “computingdevices”) may have a similar architecture to the mobile financialtransaction instruments 100 illustrated in FIG. 2. For example, thecomputing devices may include one or more processors 102, acommunication infrastructure 104, a display 106, main and/or secondarymemories 108, 110, a speaker 122, a camera 124, a microphone 126, aninput device 128, and one or more communication interfaces 130. In someembodiments, one or more of the computing devices may have a differentarchitecture than the mobile financial transaction instrument 100illustrated in FIG. 2. For example, one or more of the computing devicesmay include each of the functional components illustrated in FIG. 2except for speaker 122, camera 124, and/or microphone 126.

A user may gain access to financial institution 20 by using a device 34,54, 100 programmed with a Web browser or other software, to locate andselect (such as by clicking with a mouse) a particular webpage. Thecontent of the webpage is located on the one or more data storagedevices 26. Devices 34, 54 may be microprocessor-based computers thatcan communicate through the Internet using the Internet Protocol (IP),Kiosks with Internet access, connected personal digital assistants orPDAs (e.g., a PALM device manufactured by Palm, Inc., IPAQ deviceavailable from Compaq, iPhone from Apple or Blackberry from Research InMotion), or other devices capable of interactive network communications,such as an electronic personal planner.

The system and method described herein may be implemented by utilizingat least a part of the network described above in connection withFIG. 1. It should be apparent to one of ordinary skill in the art thatthe system may be incorporated in a LAN, in a WAN, or through anInternet 10 based approach, such as through a hosted or non-hostedapplication service, or through a combination thereof. The functionalityof the method may be programmed and executed by at least one computerprocessor unit 24, with necessary data and graphical interface pages asdescribed below stored in and retrieved from a data storage unit 26. Aparty can access this functionality using a device 34, 54, 100. Asmentioned above, FI 20 may provide separate features and functionalityfor front-end users, such as customers and non-customers, and back-endusers that manage the FI 20.

FIGS. 3A-3D illustrate one example of an active authentication (“AA”)method. Referring first to FIG. 3A, which is a flow chart of a financialtransaction using an improved AA method, the financial transactionbegins with a user logging onto the website of a FI 20. In someembodiments, the user may access the website using mobile financialtransaction instrument 100 or a computer 54. In some embodiments, theuser may access a website of the FI 20 via an application that has beendownloaded and installed on mobile financial transaction instrument 100.

Mobile financial transaction instrument 100 or computer 54 establishes aconnection with server 36 on which the FI's website resides using HTTPsecure (“HTTPS”) or other encrypted communication protocol. The FI'swebsite may authenticate the user based on data received from mobilefinancial transaction instrument 100 or computers 34, 54. Such data mayinclude a customer number or user name and password that the user inputsinto a GUI 28 displayed on display 106 using an input device 128 as willbe understood by those skilled in the art.

Once the customer number or user name and password are authenticated byFI 20, a message is transmitted via HTTPS or other encryptioncommunication protocol to mobile financial transaction instrument 100 orcomputer 54. The message may be displayed in a GUI 28 that on display106 of input device 128 or computer 54 that provides a user with one ormore editable fields or input buttons. For example, the GUI displayed tothe user may enable the user to identify various parameters concerningan upcoming financial transaction. Examples of such data that a user mayenter may include, but not be limited to, a name of a merchant, a typeof merchant (e.g., a clothing store, a food store, a gas station, movietheater, etc.), a location of the merchant, a period of time duringwhich the transaction is to be executed (e.g., next ten minutes, nexttwo hours, next five days, etc.), a type of transaction (e.g., credit,debit, etc.), and a maximum authorized amount, to name a few potentialparameters.

Once the user has entered the parameters for the financial transaction,the data entered by the user are transmitted to FI 20. FI 20 receivesthe parameters of the financial transaction from the mobile financialtransaction instrument 100 or computer 54 and prepares an AA transactionkey that is unique for the transaction and is valid for a limited periodof time. In some embodiments, the transaction key is configured suchthat the key is compatible with existing financial transaction systems.For example, the single-use AA transaction keys may include 16-20individual value positions in which the first several (e.g., 2, 3, etc.)positions identify the financial institution that issued the transactionkey and the remaining characters identify the transaction. However, oneskilled in the art will understand that the AA transaction key mayinclude fewer or more values.

The AA transaction keys may be alpha numeric such that the transactionkey is distinguishable from legacy credit card numbers that only utilizenumbers. Such AA transaction keys that are generated on aper-transaction basis, are valid for a limited amount of time, and donot include static identifiers that identify an account of a user (e.g.,a static credit card number) provide enhanced security compared toconventional card verification values (“CVV”) and card verificationcodes (“CVC”). For example, CVV and CVC are pseudorandom numbers thatprovide additional layers of security on top of the existing credit cardinfrastructure and cannot be used to perform a financial transactionwithout being accompanied by a static credit card or account number. Incontrast, the AA transaction key is a random alpha-numeric string thatdoes not include any personal account information that may bemisappropriated and used at a later time for a fraudulent transaction.Consequently, financial transactions performed using AA transaction keysdo not need to be highly encrypted since the AA transaction keys havelimited value and cannot be repeatedly used to perform unauthorizedand/or fraudulent transactions. A copy of the AA transaction key may belocally or remotely stored by FI 20 in a data storage unit 26 for lateruse as described below.

The manner in which a financial institution generates an AA transactionkey may differ from the manner in which other financial institutionsgenerate the AA transactions keys. For example, some financialinstitutions may generate AA transaction keys that have one or moreportions include data that either identifies or is based on a user'saccount with the institution. The one or more portions of the AAtransaction key that identifies or is based on a user's account may beconfidential with respect to the financial institution that generatesthe AA transaction, and the location of the user account information oruser account-based data in the AA transaction key may vary from onefinancial institution to another. For example, some financialinstitutions may include the identification data after the prefix, somefinancial institutions may include the identification data at the end orin the middle of the alpha-numeric string, and some financialinstitutions may intersperse the identification data at certainlocations throughout the alpha-numeric string.

FI 20 forwards a copy of the AA transaction key to mobile financialtransaction instrument 100 or to computer 54 where it is stored in acomputer readable storage medium such as main memory 108 or secondarymemory 110. Mobile financial transaction instrument 100 or computer 54transmits a message to FI 20 once the unique transaction key for thefinancial transaction has been stored by mobile financial transactioninstrument 100 or computer 54 at which point the financial transactionis pending.

In embodiments in which the financial transaction is to be performed ata brick-and-mortar merchant 60, a user approaches a POS device 62 at amerchant 60 at some time after the financial transaction has been setup.POS device 62 may be a terminal configured to perform contactlesstransactions by sending and receiving data using NFC, Bluetooth, orthrough other wireless communication protocols. In one embodiment, itemsselected from the shelves of a merchant are scanned by the user or anemployee of the merchant. A user places mobile financial transactioninstrument 100 near POS device 62, which transfers the stored uniquefinancial transaction key from mobile financial transaction instrument100 to POS device 62.

In embodiments in which the financial transaction is performed at anonline merchant 60, then the user clicks a check-out or other buttondisplayed on a GUI displayed on display 106 of computer 54. The GUI maypresent the user with the ability to select the method by which the userwill pay for goods or services. The user may select an activeauthentication option that causes the stored AA transaction key to betransmitted to merchant 60.

Merchant 60 or POS device 62 transmits a message including the uniquetransaction key directly to FI 20. In addition to including the uniquetransaction key, the message transmitted from merchant 60 or POS device62 to FI 20 may also include data provided by merchant 60 or POS device62 such as, for example, a total transaction amount, a merchant ID, orother merchant-specific or transaction specific data as will beunderstood by one skilled in the art. The message from merchant 60 orPOS device 62 may be transmitted to FI 20 using a closed networkconnection.

The routing of data from a merchant 60 to FI 20 may be implemented in aplurality of ways. In some embodiments, a new routing system (referredto herein as an “AA Registry”) is used by merchant 60 and POS device 62in order to properly route the message including the unique transactionkey to the appropriate financial institution. For example, the AARegistry is configured to identify a particular financial institutionbased on the first several values of the unique transaction key. The AARegistry may include routing data including, but not limited to, IPaddresses, routing numbers, and other data for routing messages betweenfinancial institutions 20 and merchants 60. The AA Registry may be apublic registry operated by an entity that is trusted by both merchantsand financial institutions. In embodiments in which the AA Registry ismaintained by a trusted entity, the trusted entity may vet each entitythat registers its data (e.g., company name or identification, IPaddress(es), etc.) with the AA Registry. In some embodiments, merchantbanking data is also stored by the AA Registry. For example, an ABArouting number and account number of the merchant's financialinstitution may be registered with the AA Registry and used for merchantverification as described below.

In some embodiments, a public registry may not be provided and therouting data may be locally stored at each merchant and financialinstitution. For example, a merchant that performs a large volume offinancial transactions may exchange routing information in the form of adata table with one or more financial institutions. Regardless of themanner in which the routing data is acquired by the merchant 60 or POSdevice 62, merchant 60 or POS device 62 directly routes the financialtransaction message to FI 20 instead of routing the message throughvarious layers of a complicated credit card network.

FI 20 receives the message from merchant 60 or POS device 62 andextracts the embedded data including the AA transaction key. Theembedded data and AA transaction key are used by FI 20 to approve ordecline the transaction. In some embodiments, FI 20 may also validatemerchant 60 with the AA Registry to provide enhanced security againstfraud. For example, FI 20 may extract the merchant ID and IP addressfrom which the authorization request message was received and transmit amessage to AA Registry requesting confirmation that merchant 60 fromwhich the authorization request message was received is listed in theregistry and the merchant ID matches the IP address stored by the AARegistry for the merchant. If merchant 60 is not validated by the AARegistry, then FI 20 may decline the transaction and send a message tothe mobile financial transaction instrument 100 of the user. If merchant60 is validated by the AA Registry, then FI 20 may continue authorizingthe transaction.

The extracted AA transaction key is used to retrieve the predeterminedparameters for the financial transaction from one or more of datastorage devices 26. FI 20 compares the other data included in themessage received from merchant 60 or POS device 62, e.g., total amount,merchant ID or information, etc., to the parameters associated with theunique transaction key and determines if the transaction should bevalidated. For example, if the amount in the message received frommerchant 60 or POS device 62 exceeds the maximum transaction amountreceived from mobile financial transaction instrument 100 or computer 54that is stored in data storage device 26, then FI 20 may transmit amessage to merchant 60 or POS device 62 identifying that the transactionhas been declined. However, if the transaction amount in the messagereceived from merchant 60 or POS device 62 is below the maximumtransaction amount received from mobile financial transaction instrument100 or computer 54 that is stored in data storage device 26, then FI 20may authorize the transaction. FI 20 may fund the transaction via anautomated clearing house (“ACH”), account transfer, or other form offund transfer from FI 20 to merchant 60.

In some embodiments, the financial transaction may include additionalsteps for providing enhanced security. For example, FI 20 may beconfigured to transmit a validation request to mobile financialtransaction instrument 100 or computer 54 upon receiving the uniquetransaction key from merchant 60 or POS device 62 and verifying thetransaction parameters. Mobile financial transaction instrument 100 orcomputer 54 displays a message on display 106 requesting user to useinput device 128 to approve or decline the transaction. Upon receivingthe user input approving or declining the transaction, mobile financialtransaction instrument 100 or computer 54 transmits the user's input toFI 20.

In response to verifying (or declining) the financial transaction eitherinternally or by receiving the user's validation of the financialtransaction, FI 20 transmits a message to merchant 60 or POS device 62identifying if the transaction should be approved or declined. If thefinancial transaction is approved by FI 20 and/or the user of mobilefinancial transaction instrument 100, then merchant 60 or POS device 62executes and completes the financial transaction. FI 20 may alsotransmit a message to mobile financial transaction instrument 100 orcomputer 54 identifying that the transaction has been confirmed andcompleted.

A flow chart of the a method 300 performed by mobile financialtransaction instrument 100 during a financial transaction that utilizesactive authentication are illustrated in FIG. 3B. One skilled in the artwill understand that computer 54 may perform similar functions during anonline transaction with a merchant 60. As shown in FIG. 3B, mobilefinancial transaction instrument 100 establishes a connection with awebsite provided by FI 20 at block 302. As described above, theconnection may be established between mobile financial transactioninstrument 100 and server 36 using HTTPS or another encryptedcommunication link. A user may access a customer portal 28 of FI 20where the user inputs a username or customer ID along with a password.The access to the website may be provided through a browser on mobilefinancial transaction instrument 100 or through a mobile applicationthat is downloaded and installed on mobile financial transactioninstrument 100.

The user may use input device 128 to gain access to the appropriate GUIprovided by the FI 20 for setting up a financial transaction. At block304, mobile financial transaction instrument 100 receives the parametersof the financial transaction input by user using input device 128. Asdescribed above, the parameters of the financial transaction mayinclude, but not be limited to, the type of transaction that is to beperformed (i.e., credit, debit, or the like), a name and/or location ofa merchant, and an authorized transaction amount. Mobile financialtransaction instrument 100 forwards the parameters of the financialtransaction to FI 20 at block 306.

At block 308, mobile financial transaction instrument 100 receives aunique AA transaction key for the financial transaction, which is storedin a computer readable storage medium at block 310. For example, mobilefinancial transaction instrument 100 may store the AA transaction key inmain memory 108 or secondary memory 110. Mobile financial transactioninstrument 100 transmits a message to FI 20 confirming receipt of the AAtransaction key at block 312.

At block 314, mobile financial transaction instrument 100 transmits thestored financial transaction key to POS device 62. The transaction keymay be wirelessly transmitted using NFC or other communication method.In some embodiments, mobile financial transaction instrument 100 mayreceive a message from FI 20 requesting the user to validate thefinancial transaction at block 316, and in response, mobile financialtransaction instrument 100 displays the message to a user on display 106and receives a user input from input device 128 at block 318. At block320, mobile financial transaction instrument 100 transmits the datainput by the user to FI 20 at block 320. Mobile financial transactioninstrument 100 may receive a transaction receipt or message identifyingthat the transaction is complete from FI 20 and/or POS device 62 atblock 322.

FIG. 3C illustrates a method 320 performed by a computing device 34, 36of FI 20 during a financial transaction that utilizes activeauthentication. At block 322, a connection is established with a mobilefinancial transaction instrument 100 or computer 54. The connection withmobile financial transaction instrument 100 may be established usingHTTPS or another encrypted communication link. FI 20 authenticates theuser by confirming that the username or customer number and passwordreceived from mobile financial transaction instrument 100 correspond toa user account with the FI 20 at block 324.

At block 326, FI 20 receives data defining a financial transaction frommobile financial transaction instrument 100 or computer 54. The datadefining the financial transaction may include, but are not limited to,a name or type of a merchant at which the financial transaction is to beperformed (e.g., a clothing store, a food store, a gas station, movietheater, etc.), a location of the merchant, a period of time duringwhich the transaction is to be executed (e.g., next thirty minutes, nextthree hours, next week, etc.), a transaction type (e.g., credit, debit,etc.) and a maximum authorized transaction amount, to name a fewpotential parameters of the financial transaction.

FI 20 generates a temporary, single-use AA transaction key at block 328.The single-use AA transaction key may be an alpha numeric string inwhich the first several digits may be used to identify the financialinstitution that generated the transaction key and the remainder of thetransaction key may be a random string that does not include anypersonal account identification information related to the user. The AAtransaction key may be generated by a random number generator thatappends the random alpha numeric string to a prefix that identifies thefinancial institution that generates the AA transaction key. In someembodiments, the manner in which a financial institution generates an AAtransaction key may differ from the manner in which other financialinstitutions generate the AA transactions keys. For example, somefinancial institutions may generate AA transaction keys that have one ormore portions include data that either identifies or is based on auser's account with the institution. The one or more portions of the AAtransaction key that identifies or is based on a user's account may beconfidential with respect to the financial institution that generatesthe AA transaction, and the location of the user account information oruser account-based data in the AA transaction key may vary from onefinancial institution to another. For example, some financialinstitutions may include the identification data after the prefix, somefinancial institutions may include the identification data at the end orin the middle of the alpha-numeric string, and some financialinstitutions may intersperse the identification data at certainlocations throughout the alpha-numeric string.

At block 330, the financial transaction key is stored in a computerreadable storage medium, such as data storage devices 26, along with thedata received from mobile financial transaction instrument 100 thatidentify the parameters of the authorized financial transaction.

At block 332, FI 20 transmits the AA transaction key to mobile financialtransaction instrument 100. FI 20 receives and processes a request tovalidate a financial transaction from a POS device 62 at block 334. Forexample, FI 20 extracts data from message and verifies the authenticityof the AA transaction key. The authentication of the AA transaction keymay include searching data storage devices 26 to ensure that the AAtransaction key has been generated and stored. FI 20 may also comparedata in the message received from POS device 62 to data stored in datastorage devices 26 that is associated with the AA transaction key andwas received from mobile financial transaction instrument 100. Forexample, FI 20 may check to ensure that the transaction amount receivedfrom POS device 62 is less than or equal to the authorized transactionamount received from mobile financial transaction instrument block 326,may check that the POS device 62 from which the AA transaction key wasreceived is associated with a merchant 60 that is of the type the userauthorized at block 326, or may check to confirm other data receivedfrom POS device 62 is in accordance with the user-approved parameters ofthe financial transaction.

As described above, FI 20 may also validate the identity and existenceof merchant 60 to provide enhanced security against fraud. For example,FI 20 may extract the merchant ID and the IP address from which theauthorization request message was received and transmit the extractedinformation to the AA Registry. FI 20 receives a response from the AARegistry confirming or denying the existence or identification of themerchant 60 from which the POS device 62 is associated. If the messagereceived from the AA Registry identifies that the information receivedfrom POS device 62 of merchant 60 does not match information on filewith the AA Registry (i.e., the information is fraudulent or themerchant does not exist), then FI 20 may terminate or decline thetransaction. If the message received from the AA Registry identifiesthat the information received from POS device 62 of merchant 60 matchesinformation on file with the AA Registry, then FI 20 may continueauthorizing the transaction.

In some embodiments in which additional security is desired, FI 20transmits a validation request to mobile financial transactioninstrument 100 that is based on the data received from POS device 62 atblock 336. The validation request may include various parametersconcerning the financial transaction that are to be displayed on display106 of mobile financial transaction instrument 100 and requests the userto validate the transaction using mobile financial transactioninstrument 100. At block 338, FI 20 receives a message from payment 100that identifies if the user approved or denied the transaction.

FI 20 determines if the transaction should be approved or denied atdecision block 340. The decision to approve or decline the financialtransaction may be based on the single-use AA transaction key receivedfrom POS device 54, by comparing the data received from POS device 62 tothe data received from mobile financial transaction instrument 100,including the single-use AA transaction key, and/or by determining ifmerchant 60 is fraudulent. In embodiments in which the additionalsecurity steps are implemented, FI 20 may also base the authorizationdecision on the user's response to the validation request received by FI20 at block 338.

If the transaction is not approved, then FI 20 declines the transactionat block 342 and transmits a transaction declined message to POS device62 and/or to mobile financial transaction instrument 100 at block 344.As will be understood by those skilled in the art, the transaction maybe declined if the amount of the transaction exceeds the pre-approvedtransaction amount, if the single-use transaction key either does notexist or has expired, the user declines the transaction when prompted onthe mobile financial transaction instrument 100, or for other reasonssuch as FI 20 determining that merchant 60 is fraudulent or does notexist.

If the transaction is approved, then FI 20 approves the transaction atblock 346 and transmits a transaction approved message to POS device 62and/or to mobile financial transaction instrument 100 at block 348. FI20 may approve the transaction based on the single-use transaction key,if the parameters of the transaction received from POS device 62sufficiently match the pre-defined financial transaction parametersentered by the user, and/or if the response to the transactionauthorization message received from mobile financial transactioninstrument 100 identifies the transaction as being approved.

FIG. 3D illustrates a method 360 performed by POS device 62 during afinancial transaction that utilizes active authentication. Method 360begins with POS device 62 receiving a single-use transaction key frommobile financial transaction instrument 100. The transaction key may bereceived from mobile financial transaction instrument 100 using NFC,Bluetooth, or another wireless transmission protocol. At block 364, POSdevice 62 generates data for the financial transaction for transmissionto FI 20. Examples of the financial transaction data may include, butare not limited to, a merchant ID, the total amount of the transaction,a location of the merchant, to list a few possibilities.

POS device 62 transmits a message to FI 20 at block 366 requestingapproval of the financial transaction. The message transmitted from POSdevice 62 may include the transaction key received from mobile financialtransaction instrument 100 and financial transaction data generated byPOS device 62. The message transmitted from POS device 62 to FI 20 maybe transmitted over a closed network connection.

In some embodiments, POS device 62 may obtain the IP address or othercontact information for FI 20 by contacting the AA Registry. Forexample, PO device 62 may strip off the first several characters of theAA transaction key received from mobile financial transaction instrument100 and send these characters to the AA Registry. POS device 62 mayreceive the IP address or other contact information for routing the AAtransaction key to FI 20 from the AA Registry. In some embodiments, POSdevice 62 retrieves the IP address of the financial institution from alocal non-transient computer readable storage medium in which thefinancial institution contact information is associated with theidentifiers of the financial institution that are included in the AAtransaction key.

At block 368, POS device 62 receives a message from FI 20 identifying ifthe financial transaction has been approved or declined. The message maybe received from financial transaction over the same closed networkconnection over which POS device 62 transmitted the authorizationrequest. If the message received from FI 20 identifies that thetransaction has been declined, then POS device 20 cancels the financialtransaction at block 370. Canceling the financial transaction mayinclude displaying a message on a display that the transaction has beendeclined and/or transmitting a message to mobile financial transactioninstrument 100 that causes a message to be displayed on display 106 thatthe transaction has been declined. If the message received from FI 20identifies that the transaction has been approved, then the financialtransaction completed at block 372. Completing the financial transactionmay include displaying a message on a display of POS device 62 that thetransaction has been approved and/or transmitting a message to mobilefinancial transaction instrument 100 that causes a message to bedisplayed on display 106 that the transaction has been approved.

Other financial transactions that may be performed using AA transactionkeys include transferring funds to a third party. FIGS. 4A and 4Billustrate the transmission of data between a transferor (persontransferring funds), a financial institution, a transferee (personreceiving funds), and an ATM. As shown in FIG. 4A, a fund transfertransaction begins with the transferor logging into a website of FI 20.The transferor may log onto the website using a computer 54 or by usinga mobile application or web browser installed on a mobile financialtransaction instrument 100.

Mobile financial transaction instrument 100 or computer 54 establishes aconnection with server 36 on which the FI's website resides using HTTPSor other encrypted communication protocol, and the financialinstitution's website may authenticate the user based on data receivedfrom mobile financial transaction instrument 100 or computers 34, 54.Such data may include a customer number or user name and password thatthe user inputs into a GUI 28 displayed on display 106 using an inputdevice 128 as will be understood by those skilled in the art.

Once the customer number or user name and password are authenticated byFI 20, a message is transmitted via HTTPS or other encryptioncommunication protocol to mobile financial transaction instrument 100 orcomputer 54. The message may be displayed in a GUI 28 that is displayedon display 106 of mobile financial transaction instrument 100 orcomputer 54 that provides a user with one or more editable fields orinput buttons. For example, the GUI displayed to the user may enable theuser to identify various parameters concerning an upcoming fund transfertransaction. Examples of such data that a user may enter may include,but not be limited to, the amount of the fund transfer, an account fromwhich the funds are to be transferred, a phone number or other uniqueidentifier (e.g., an international mobile subscriber identity (“IMSI”),an electronic serial number (“ESN”), or a media access control (“MAC”)address) of the mobile financial transaction instrument of thetransferee, and a time period during which the fund transfer may beperformed, to name a few possible data entries.

FI 20 may generate a GUI that displays the parameters of the fundtransfer transaction and requests the transferor to confirm thetransaction. Upon receiving a confirmation of the transaction, which maybe received by FI 20 in response to the transferor using an input device128 of mobile financial transaction instrument 100 or computer 54, FI 20prepares a unique AA transaction key and a PIN for the wiringtransaction. The AA transaction key may be an alpha numeric string inwhich the first several digits may be used to identify the financialinstitution that generated the AA transaction key and the remainder ofthe AA transaction key may be a random string that does not include anypersonal account or otherwise static identification information relatedto the user. In some embodiments, the AA transaction key is generated bya random number generator that appends the random alpha numeric stringto a prefix that identifies the financial institution that generates theAA transaction key. As described above, the manner in which a financialinstitution generates an AA transaction key may differ from the mannerin which other financial institutions generate the AA transactions keys.For example, some financial institutions may generate AA transactionkeys that have one or more portions include data that either identifiesor is based on a user's account with the institution.

A copy of the unique AA transaction key and PIN may be locally orremotely stored by FI 20 in a data storage unit 26 for later use asdescribed below. Additionally, FI 20 may transfer funds from thetransferor's bank account to a wash or other holding account andtransmit the PIN to mobile financial transaction instrument 100 of thetransferee. The PIN may be transmitted to the transferee's mobilefinancial transaction instrument 100 via short message service (“SMS”),email, voice mail, or via any other messaging manner as will beunderstood by one skilled in the art.

Turning now to FIG. 4B, the transferee logs onto a website of FI 20using the transferee's mobile financial transaction instrument 100. Insome embodiments, transferee downloads and installs a mobile applicationonto the transferee's mobile financial transaction instrument 100. Thetransferee does not need to have an account or be otherwise associatedwith FI 20. The mobile application establishes a connection with server36 of FI 20 using HTTPS or other encrypted communication protocol. Thetransferee may enter the PIN into GUI 30 displayed on display 106 of thetransferee's mobile financial transaction instrument 100.

FI 20 validates the PIN received from mobile financial transactioninstrument 100 and retrieves the parameters of the wiring transactionfrom data storage device 26. The details of the wiring transaction maybe presented to the transferee on a GUI 30 displayed on display 106 ofmobile financial transaction instrument 100. The transferee may acceptthe funds by using input device 128 to indicate his/her acceptance ofthe fund transfer on GUI 30.

FI 20 retrieves the single-use AA transaction key from data storagedevices 26 in response to the transferee's input accepting the fundtransfer. The AA transaction key is transmitted from FI 20 to the mobilefinancial transaction instrument 100 of the transferee. The AAtransaction key is stored in a computer readable storage medium, such asmain memory 108 and/or secondary memory 110, on mobile financialtransaction instrument 100.

At some time after the fund transfer has been setup, the transfereeapproaches an ATM 70 that is equipped with a wireless transmissionmodule for transferring and receiving data from mobile financialtransaction instrument 100. Such wireless transmission modules include,but are not limited to, modules that enable ATM 70 to transmit andreceive data via NFC, Bluetooth, or through other wireless communicationprotocols. The transferee initiates a withdrawal of funds from ATM 70 byplacing mobile financial transaction instrument 100 near ATM 70 suchthat the AA transaction key is transmitted to ATM 70.

ATM 70 generates a second PIN in response to receiving the AAtransaction key from mobile financial transaction instrument 100. ThePIN and AA transaction key are transmitted from ATM 70 to FI 20 in arequest to authorize the disbursement of funds. ATM 70 may query the AARegistry using the first several characters of the AA transaction key toacquire the contact information for FI 20, or ATM 70 may be able todetermine the contact information for FI 20 based on a locally storeddatabase in which the first several characters of the AA transaction keyare associated with the contact information for the financialinstitution.

FI 20 determines if the funds should be disbursed by ATM 70 based on theAA transaction key embedded within the authorization request messagereceived from ATM 70, which may be received through a closed networkconnection. If the transaction key is validated, FI 20 transmits amessage authorizing the disbursement of funds to ATM 70 via the closednetwork connection and transmits the second PIN to the mobile financialtransaction instrument 100 of the transferee.

The second PIN may be received at mobile financial transactioninstrument 100 and be automatically transferred to ATM 70 via a wirelesscommunication channel. In some embodiments, the second PIN may bereceived at mobile financial transaction instrument 100, which notifiesthe transferee in response. Such notification may include flashing anLED of mobile financial transaction instrument 100, displaying a messageon display 106, and/or causing mobile financial transaction instrument100 to vibrate or emit a noise, to list a few potential notificationpossibilities. The transferee may input the second PIN directly into ATM70 using an input device of ATM 70.

ATM 70 receives the second PIN from mobile financial transactioninstrument 100 and verifies that the PIN matches the PIN that wastransmitted to FI 20. If ATM 70 confirms that the PIN received frommobile financial transaction instrument 100 matches the PIN transmittedto FI 20, then ATM 70 releases the funds to transferee.

FIG. 4C is illustrates one example of a method 400 that may be performedby a mobile financial transaction instrument 100 or computer 54 accessedby a transferor during a fund transfer transaction such as the oneillustrated in FIGS. 4A and 4B. At block 402, mobile financialtransaction instrument 100 or computer 54 establishes a connection witha website provided by FI 20. As described above, the connection may beestablished between computer 54 or mobile financial transactioninstrument 100 and server 36 using HTTPS or other encryptedcommunication link. The transferor may access a customer portal 28 of FI20 where the transferor inputs a username or customer ID along with apassword. The access to the website may be provided through a browser oncomputer 54 or mobile financial transaction instrument 100 or through amobile application that is downloaded and installed on mobile financialtransaction instrument 100.

The transferor may enter parameters of the fund transfer into GUI 28 ofthe website provided by FI 20, which are transferred to FI 20 at block404. Examples of the parameters include, but are not limited to, theamount of funds to be transferred, the account from which the funds areto be sourced, and a period of time during which the funds transfer isto be performed, to list only a few possible parameters. The transferormay also provide a phone number or other identification number of thetransferee's mobile financial transaction instrument 100 at block 404.In some embodiments, an email address of the transferee in addition to,or instead of, the phone number of the transferee's mobile financialtransaction instrument 100 may be provided.

In some embodiments, financial transaction device 100 or computer 54 mayreceive a request from FI 20 requesting the transferee to confirm andauthorize the fund transfer at block 406. For example, computer 54 ormobile financial transaction instrument 100 may display a message or GUI28 on display 106 requesting the transferor to use input device 128 toconfirm and authorize the transaction. Transferor may use input device128 to confirm and authorize the transaction in response to the promptdisplayed on display 106, which is then transferred from computer 54 ormobile financial transaction instrument 100 to FI 20 at block 408.

FIG. 4D illustrates a method 420 performed by FI 20 during a fundstransfer transaction such as the funds transfer transaction illustratedin FIGS. 4A and 4B. As shown in FIG. 4D, FI 20 establishes a connectionwith mobile financial transaction instrument 100 or computer 54 at block422. The connection may be established between FI 20 and computer 54 ormobile financial transaction instrument 100 using HTTPS or otherencrypted communication link. At block 424, FI 20 authenticates thecredentials of the transferor received from computer 54 or mobilefinancial transaction instrument 100. Authenticating the transferor'slogin information may include comparing the username or customer ID andpassword to a database stored in data storage devices 26 that includeseach of a plurality of customer usernames or identification numbersassociated with a password.

FI 20 receives a request for transferring funds to a third party atblock 426. The request may include various parameters defining thetransaction such as, for example, the amount of funds to be transferred,the account from which the funds are to be withdrawn, and an amount oftime during which the funds may be transferred. FI 20 may also receive aphone number or other identification number, such as a MAC address, IMSIor ESN, of the transferee's mobile financial transaction instrument 100at block 404. In some embodiments, FI 20 may receive an email address ofthe transferee in addition to, or instead of, the phone number of thetransferee's mobile financial transaction instrument 100.

At block 428, FI 20 prepares the funds transaction. For example, FI 20may check to ensure that the amount of funds to be transferred is lessthan the total amount of funds available for withdrawal in the accountidentified by transferor, store the parameters of the transaction in acomputer readable storage medium, and cause a transaction confirmationGUI to be displayed to transferor. FI 20 receives an authorization forthe transaction from computer 54 or mobile financial transactioninstrument 100 being used by transferor at block 430.

At block 432, FI 20 generates a one-time AA transaction key and a PIN,which are stored in one or more data storage device 26. The AAtransaction key can be a random alpha numeric string that is appended toa prefix that identifies the financial institution that generated thetransaction key. As will be understood by one skilled in the art, therandom portion of the AA transaction key may be generated by a randomnumber generator. Advantageously, the AA transaction key does notinclude static user account information that may be stolen by a thirdparty and used to gain access to the user's funds.

In some embodiments described above, some financial institutions maygenerate AA transaction keys that have one or more portions include datathat either identifies or is based on a user's account with theinstitution. The one or more portions of the AA transaction key thatidentifies or is based on a user's account may be confidential withrespect to the financial institution that generates the AA transaction,and the location of the user account information or user account-baseddata in the AA transaction key may vary from one financial institutionto another. For example, some financial institutions may include theidentification data after the prefix, some financial institutions mayinclude the identification data at the end or in the middle of thealpha-numeric string, and some financial institutions may interspersethe identification data at certain locations throughout thealpha-numeric string.

FI 20 transmits the PIN to transferee's mobile financial transactioninstrument 100 at block 434. In some embodiments, the PIN is transmittedto via SMS messaging, although one skilled in the art will understandthat the PIN may be transmitted via email, telephonically, or via anyother messaging manner. At block 436, FI 20 transfers the funds that areto be transferred to a third party from the transferor's account to awash account or other temporary holding account for later disbursement.

A connection is established with the transferee's mobile financialtransaction instrument 100-1 at block 438. The connection may beestablished using HTTPS or another encrypted communication protocolthrough which the transferee gains access to a GUI 30 provided by FI 20.At block 440, FI 20 validates the PIN received from mobile financialtransaction instrument 100 of the transferee and uses the PIN toretrieve data for the fund transfer transaction from one or more of thedata storage device 26. GUI 30 provided by FI 20 requests transferee toconfirm the funds transfer at block 442. If transferee accepts thefunds, then at block 444 FI 20 transfers the at least partially randomAA transaction key to mobile financial transaction instrument 100 of thetransferee.

At block 446, FI 20 receives an authorization request from ATM 70. Theauthorization request may be received at FI 20 from ATM 70 via a closednetwork connection and includes the AA transaction key and a second PINgenerated by ATM 70. FI 20 confirms that the AA transaction key matchesa copy of the AA transaction key stored in data storage device 26 andchecks to ensure that the authorized time for the funds transfer asidentified by the transferor has not lapsed.

FI 20 transmits an authorization message to ATM 70 via the closedconnection at block 450 and transmits the second PIN received from ATM70 to the mobile financial transaction instrument 100 of the transfereeat block 452.

FIG. 4E illustrates a method 460 performed by an ATM 70 during a fundstransfer transaction such as the funds transfer transaction illustratedin FIGS. 4A and 4B. ATM 70 receives an AA transaction key from themobile financial transaction instrument 100 of transferee at block 462.The AA transaction key is received from the transferee's mobilefinancial transaction instrument 100 via a wireless transmissionprotocol such as NFC, Bluetooth, or the like.

At block 464, ATM 70 generates a PIN in response to receiving thetransaction key from mobile financial transaction instrument 100. ThePIN may be a multi-digit number generated by a random number generatoras will be understood by one skilled in the art. If the PIN is to bekeyed into the ATM 70, then the PIN is numeric such that it may be usedwith conventional ATMs. However, if ATMs are capable of receiving alphanumeric codes via keypads or if the PIN is to be entered on the mobilefinancial transaction instrument 100 and then transferred to the ATM,then the PIN may be alpha numeric. ATM 70 transmits a validation requestto financial institution 20 at block 466. The validation request messageis transmitted via a closed network connection and includes theATM-generated PIN. The validation request message may also include acopy of the AA transaction key received from mobile financialtransaction instrument 100.

ATM 70 may query the AA Registry for the contact information of FI 20based on the AA transaction key. For example, ATM 70 may forward thefirst several characters of the AA transaction key to the AA Registry,which then uses the received characters to identify the financialinstitution that generated the AA transaction key and the contactinformation (e.g., IP address) for the financial institution. In someembodiments, ATM 70 may have the appropriate contact information for thefinancial transaction locally stored in a non-volatile computer readablestorage medium.

ATM 70 receives a message from FI 20 authorizing the disbursement offunds at block 468. The message received from FI 20 authorizing thedisbursement may be received over the same closed network connectionbetween ATM 70 and FI 20 that was used to transmit the authorizationrequest from ATM 70 to FI 20. At block 470, ATM 70 receives theATM-generated PIN. In some embodiments, the ATM-generated PIN isreceived from mobile financial transaction instrument 100 via NFC,Bluetooth, or in accordance with another wireless connection protocol.In some embodiments, ATM 70 receives the ATM-generated PIN by thetransferee entering the PIN using an input device 128 of the ATM inresponse to being prompted by ATM 70. For example, ATM 70 may display amessage on display 106 of ATM 70 requesting the transferee to enter theATM-generated PIN using input device 128 of ATM 70.

At decision block 472, ATM 70 determines if the PIN received fromtransferee matches the ATM-generated PIN that ATM 70 transmitted to FI20. If the received PIN does not match the ATM generated PIN, which maybe stored in a computer readable storage medium, such as main memory 108and/or secondary memory 110, then ATM 70 declines the transaction atblock 474. ATM 70 may display a message on display 106 that thetransaction has been declined when declining the transaction. At block476, ATM 70 transmits a message to FI 20 identifying that thetransaction was declined and the funds were not disbursed due to the PINreceived by ATM 70 not matching the stored ATM-generated PIN.

If ATM 70 determines that the received PIN matches the stored version ofthe ATM-generated PIN at decision block 472, then ATM 70 approves thetransaction at block 478. At block 480, ATM 70 disburses the funds tothe transferee to complete the fund transfer.

In addition to the financial transaction described above, mobilefinancial transaction instrument 100 may also be used to performnear-instant transactions at an ATM. As shown in FIG. 5A, a user logsinto a website of FI 20 using a computer 34, 54, a mobile financialtransaction instrument 100, or any other device programmed with a Webbrowser or other software to locate and select (such as by clicking witha mouse) a particular webpage. In some embodiments, the user may accessa website of the FI 20 via a mobile application that has been downloadedand installed on mobile financial transaction instrument 100. Mobilefinancial transaction instrument 100 or computer 54 establishes aconnection with server 36 on which the FI's website resides using HTTPSor other encrypted communication protocol.

The FI's website authenticates the user based on data received frommobile financial transaction instrument 100 or computers 34, 54. Suchdata may include a customer number or user name and password that theuser inputs into a GUI 28 displayed on display 106 using an input device128 as will be understood by those skilled in the art.

Once the customer number or user name and password are authenticated byFI 20, a message is transmitted via HTTPS or other encryptioncommunication protocol to mobile financial transaction instrument 100 orcomputer 34, 54. The message may be displayed in a GUI 28 that ondisplay 106 of input device 128 or computer 54 that provides a user withone or more editable fields or input buttons. For example, the GUIdisplayed to the user may enable the user to identify various parametersconcerning an upcoming financial transaction that is to take place at anATM 70. Examples of such data that a user may enter may include, but notbe limited to, the type of transaction (e.g., a withdrawal, a deposit,and/or a fund transfer), a location of the ATM, a period of time duringwhich the ATM transaction is to be executed (e.g., next twenty minutes,next four hours, the next day, etc.), an account of the user from whichfunds are to be withdrawn or into which they are to be deposited, and anamount of the transaction, to name a few potential parameters.

Once the user has entered the parameters for the ATM transaction, thedata entered by the user is transmitted to FI 20. FI 20 receives theparameters of the ATM transaction from the mobile financial transactioninstrument 100 or computer 34, 54 and prepares a unique AA transactionkey for the transaction. As described above, the single-use AAtransaction key may be an alpha numeric string in which the firstseveral digits may be used to identify the financial institution thatgenerated the transaction key and the remainder of the transaction keymay be a random string that does not include any personal accountidentification information. In some embodiments, some financialinstitutions may generate AA transaction keys that have one or moreportions include data that either identifies or is based on a user'saccount with the institution. As described above, some financialinstitutions may include the identification data after the prefix, somefinancial institutions may include the identification data at the end orin the middle of the alpha-numeric string, and some financialinstitutions may intersperse the identification data at certainlocations throughout the alpha-numeric string. A copy of the uniquetransaction key may be locally or remotely stored by FI 20 in a datastorage unit 26 for later use as described below.

FI 20 forwards a copy of the AA transaction key to mobile financialtransaction instrument 100 where it is stored in a computer readablestorage medium, such as main memory 108 and/or secondary memory 110. Theunique AA transaction key is transmitted to mobile financial transactioninstrument 100 associated with the user's account at the FI 20 even ifthe user sets up the financial transaction from computer 34, 54. Mobilefinancial transaction instrument 100 transmits a message to FI 20 oncethe unique AA transaction key for the ATM transaction has been stored bymobile financial transaction instrument 100 at which point the ATMtransaction is pending. Depending on the type of ATM transaction, FI 20may move funds the user has identified for withdrawal or transfer fromthe account identified by the user to a holding account where the fundsremain until the transaction is completed.

At some time after the ATM transaction has been setup, a user approachesan ATM 70 that is configured to perform contactless transactions bysending and receiving data using NFC, Bluetooth, or through otherwireless communication protocols. The user places mobile financialtransaction instrument 100 near ATM 70, which transfers the storedsingle-use AA transaction key from mobile financial transactioninstrument 100 to ATM 70.

ATM 70 receives the AA transaction key from mobile financial transactioninstrument 100 and extracts the first several characters of the AAtransaction key that are used to identify the financial institution thatgenerated the AA transaction key. The characters extracted from the AAtransaction key are sent to the AA Registry to identify the financialinstitution to which the AA transaction key is to be routed. The AARegistry uses the received characters to identify the financialinstitution that generated the AA transaction key and the contactinformation (e.g., IP address) for the financial institution. In someembodiments, ATM 70 may have the appropriate contact information for thefinancial transaction locally stored in a non-volatile computer readablestorage medium and thus do not transfer and receive data with the AARegistry.

ATM 70 transmits a message including the AA transaction key receivedfrom mobile financial transaction instrument 100 to FI 20 via a closednetwork connection. FI 20 receives the message from ATM 70 and validatesthe AA transaction key and the transaction. Validation of the AAtransaction key may include extracting the AA transaction key from themessage received from ATM 70 and comparing the received AA transactionkey to the copy of the AA transaction key stored in data storage device26. FI 20 may validate the transaction by checking to ensure that theATM transaction is in accordance with the parameters defined by theuser. For example, FI 20 may confirm that the transaction is beingperformed within the time frame authorized by the user and at a locationthat was authorized by the user, which may be determined by comparingdata included in the message received from ATM 70 that was added by ATM70 (e.g., an ATM identification number, time stamp, etc).

FI 20 transmits an authorization message to ATM 70 via the closednetwork connection through which FI 20 received the authorizationrequest from ATM 70. Upon receiving the authorization message from FI20, ATM 70 executes the transaction for the user. For example, if thetransaction is a withdrawal, then ATM 70 disburses the money to the useras will be understood by those skilled in the art. The near-instant ATMtransaction advantageously reduces the amount of time that a personneeds to remain in front of an ATM thereby increasing the security andsafety of performing ATM transactions.

FIG. 5B is a flow chart of the functions performed by mobile financialtransaction instrument 100 during the improved ATM transactionillustrated in FIG. 5A. At block 502, mobile financial transactioninstrument 100 establishes a connection with a website provided by FI20. The connection may be established between mobile financialtransaction instrument 100 and server 36 of FI 20 using HTTPS or anotherencrypted communication link. A user may access a customer portal 28 ofFI 20 where the user inputs a username or customer ID along with apassword. The access to the website may be provided through a browser onmobile financial transaction instrument 100 or through a mobileapplication that is downloaded and installed on mobile financialtransaction instrument 100.

The user may use input device 128 to gain access to the appropriate GUIprovided by the FI 20 for setting up a financial transaction. Mobilefinancial transaction instrument 100 receives the parameters of the ATMtransaction input by user using input device 128 at block 504, which areforwarded from mobile financial transaction instrument 100 to FI 20 atblock 506.

At block 508, mobile financial transaction instrument 100 receives an AAunique transaction key for the ATM transaction. Mobile financialtransaction instrument 100 stores the unique AA transaction key in acomputer readable storage medium at block 510. For example, mobilefinancial transaction instrument 100 may store the transaction key inmain memory 108 and/or in secondary memory 110. Mobile financialtransaction instrument 100 transmits a message to FI 20 confirmingreceipt of the transaction key at 512.

At block 514, mobile financial transaction instrument 100 transmits thestored AA transaction key to ATM 70. The transaction key may bewirelessly transmitted using NFC or other wireless communication method.Once the transaction is approved between ATM 70 and FI 20, the ATM 70executes the transaction without further input from mobile financialtransaction instrument 100.

The functions performed by the financial institution during the ATMtransaction illustrated in FIG. 5A are shown in FIG. 5C, which is oneexample of a flow diagram of a method 520 performed by the financialinstitution. As shown in FIG. 5C, a connection is established with amobile financial transaction instrument 100 or computer 34, 54 at block522. The connection with mobile financial transaction instrument 100 orcomputer 34, 54 may be established using HTTPS or another encryptedcommunication link. At block 524, FI 20 authenticates the user byconfirming that the username or customer number and password receivedfrom mobile financial transaction instrument 100 or computer 34, 54correspond to a user account with the FI 20.

FI 20 receives data defining an ATM transaction from mobile financialtransaction instrument 100 or computer 34, 54 at block 526. The datareceived from mobile financial transaction instrument 100 or computer34, 54 may include a location of the ATM that will be used for thetransaction, the type of transaction that will be performed at the ATM(e.g., withdrawal, deposit, etc.), an amount of the transaction, and auser account that is to be involved in the transaction. One skilled inthe art will understand that the data received from mobile financialtransaction instrument 100 or computer 34, 54 may include more or lessdata.

At block 528, FI 20 prepares a single-use AA transaction key for use inthe ATM transaction. The single-use AA transaction key may be generatedusing a random string generator to create an alpha numeric string inwhich the first several digits may be used to identify the financialinstitution that generated the transaction key and the remainder of thetransaction key may be a random string that does not include anypersonal account identification information. As described above, somefinancial institutions may generate AA transaction keys that have one ormore portions include data that either identifies or is based on auser's account with the institution. For example, some financialinstitutions may include the identification data after the prefix, somefinancial institutions may include the identification data at the end orin the middle of the alpha-numeric string, and some financialinstitutions may intersperse the identification data at certainlocations throughout the alpha-numeric string. The single-use AAtransaction key is stored by FI 20 in a data storage unit 26 at block530 for later use. In some embodiments, FI 20 may also store theparameters received from computer 34, 54 or mobile financial transactioninstrument 100 defining the ATM transaction in one or more of datastorage units 26 such that the parameters are associated with thesingle-use AA transaction key and/or an account of the user.

FI 20 transmits a copy of the single-use AA transaction key to mobilefinancial transaction instrument 100 at block 532. The AA transactionkey is transmitted to mobile financial transaction instrument 100 evenif a user provides FI 20 with the parameters of the financialtransaction using computer 34, 54 since mobile financial transactioninstrument 100 is used to carry out the financial transaction. At block534, FI 20 transfers funds that are to be withdrawn to a wash account ifthe ATM transaction is a withdrawal.

FI 20 processes a validation request received from ATM 70 at block 536.The validation request includes a ATM-generated PIN and a copy of the AAtransaction key, which is used by FI 20 to approve or decline the ATMtransaction at block 538. For example, if the validation requestreceived from ATM 70 does not include a single-use AA transaction keythat matches a copy of an AA transaction key stored in one or more datastorage devices 26, then FI 20 declines the transaction at block 540 andtransmits a transaction declined message to mobile financial transactioninstrument 100 and/or ATM 70 at block 542. In some embodiments, FI 20may decline the transaction if the AA transaction key is received afterthe expiration of the authorized time period for the ATM transaction asdefined by the user. FI 20 may compare a time stamp included in theauthorization request message received from ATM 70 to a time valuestored in a data storage device 26 to determine if the transaction istaking place within the authorized time period. FI 20 may transfer theuser's funds from the temporary wash account to the account from whichthe funds were deducted in the event that the transaction is declined.

If FI 20 determines the transaction should be approved at block 540,then the transaction is approved at block 544. At block 546, FI 20transmits a transaction confirmation message to ATM 70. FI 20 transmitsthe ATM-generated PIN to mobile financial transaction instrument 100 atblock 548.

FIG. 5D illustrates one example of a method 560 performed by ATM 70during an ATM transaction in accordance with FIG. 5A. Method 560 beginswith ATM 70 receiving a single-use transaction key from mobile financialtransaction instrument 100. The transaction key may be received frommobile financial transaction instrument 100 using NFC, Bluetooth, orother wireless transmission protocol when the mobile financialtransaction instrument 100 is positioned near ATM 70.

ATM 70 generates a PIN at block 564. The PIN may be generated by arandom number generator as will be understood by one skilled in the art.In some embodiments, the PIN is a random number string of approximatelyfour to ten digits. However, one skilled in the art will understand thatthe PIN may include fewer or more numbers.

ATM 70 may extract the first several characters of the AA transactionkey that are used to identify the financial institution that generatedthe AA transaction key and forward the extracted characters to the AARegistry to identify the financial institution to which the AAtransaction key is to be routed. The AA Registry uses the receivedcharacters to identify the financial institution that generated the AAtransaction key and the contact information (e.g., IP address) for thefinancial institution. In some embodiments, ATM 70 may have theappropriate contact information for the financial transaction locallystored in a non-volatile computer readable storage medium and thus donot transfer and receive data with the AA Registry.

At block 566, ATM 70 transmits a validation request message to FI 20over a closed network connection. The validation request messageincludes the AA transaction key and the PIN generated by ATM 70. In someembodiments, the validation request message may also include additionaldata added by ATM 70 including, but not limited to, a time stamp, an ATMidentifier, or the like.

At decision block 568, ATM 70 received a transaction authorizationmessage from FI 20 and determines if the transaction has been authorizedby FI 20. If ATM 70 determines that the transaction has been declined byFI 20, then ATM 70 declines the transaction at block 570. For example,ATM 70 may display a message to the user on display 106 identifying thatthe transaction has been declined.

If the authorization message received from FI 20 identifies that FI 20has authorized the transaction, then ATM 70 determines if it hasreceived the ATM-generated PIN from the user or mobile financialtransaction instrument 100 at decision block 572. For example, a usermay input a PIN using input device 128, which is analyzed by ATM 70 todetermine if the input PIN matches a stored copy of the ATM-generatedPIN. In some embodiments, ATM 70 may received a PIN from mobilefinancial transaction instrument 100 via a wireless communicationconnection, such as NFC, and compare the received PIN to a stored copyof the ATM-generated PIN to determine if the PINs match.

If the ATM-generated PIN has not been received or if a PIN received froma user or mobile financial transaction instrument 100 does not match theATM-generated pin stored in a computer readable storage medium, then ATM70 declines the transaction at block 574. Declining the transaction mayinclude displaying a message to user on display 106 of ATM 70 ortransmitting a message to mobile financial transaction instrument 100via a wireless transmission protocol that causes a message to bedisplayed to the user on display 106 of mobile financial transactioninstrument 100. ATM 70 may also transmit a message to FI 20 to notify FI20 that the transaction has been declined by ATM 70.

If ATM 70 receives the ATM-generated PIN via input device 128 of ATM 70or via a wireless communication connection with mobile financialtransaction instrument 100, then ATM 70 completes the ATM transaction atblock 576. For example, ATM 70 may dispense the funds to the user if thetransaction is a withdrawal and may transmit a message to FI 20identifying that the transaction has been completed.

The active authentication may also be used in connection withperson-to-person (“P2P”) transaction, i.e., a transaction in which fundsare transferred from one person's financial institution to the financialinstitution of another person. In some embodiments, the financialinstitutions of the person sending the funds (“transferor”) is differentfrom the financial institution of the person receiving the funds(“transferee”). In some embodiments, the transferor and the transfereemay have accounts with the same financial institution. FIGS. 6A and 6Billustrate the flow of data in a P2P transaction. Referring first toFIG. 6A, a transferor logs onto a website of a financial institution20-1 at which the transferor has an account. The transferor may log ontothe website of FI 20-1 using a browser on a computer 34, 54 or a browseror mobile application installed on a mobile financial transactioninstrument 100-1.

Mobile financial transaction instrument 100-1 or computer 34, 54establishes a connection with server 36 on which the FI's websiteresides using HTTPS or other encrypted communication protocol, and thefinancial institution's website may authenticate the transferor based ondata received from mobile financial transaction instrument 100-1 orcomputers 34, 54. Such data may include a customer number or user nameand password that the user inputs into a GUI 28 displayed on display 106using an input device 128 as will be understood by those skilled in theart.

Once FI 20-1 authenticates the customer number or user name andassociated password, the transferor is provided with a GUI 28 in whichthe parameters of a P2P transaction may be defined by the transferor.For example, the GUI displayed to the transferor may enable thetransferor to identify the amount of the transfer, an account from whichthe funds are to be transferred, a phone number or other uniqueidentifier of the mobile financial transaction instrument of thetransferee (e.g., a MAC address, an IMSI, or ESN), an email address ofthe transferee, and a time period during which the fund transfer may beperformed, to name a few possible data entries.

The transferor's FI 20-1 prepares a fund transfer based on the dataprovided by the transferor. The GUI 28 provided by FI 20-1 may requestthe transferor confirm the transaction by utilizing input device 128 ofcomputer 34, 54 or financial transaction input device 100-1. FI 20-1moves the funds identified by the transferor as being transferred into awash account in response to the transaction being confirmed by thetransferor. FI 20-1 also generates an AA transaction key and a PIN. TheAA transaction key may include a plurality of alpha-numeric charactersin which the first several alpha-numeric characters identify thefinancial institution that prepared the AA transaction key and theremaining characters are randomly generated. In some embodiments, the AAtransaction key may include one or more portions that either identifiesor is based on a user's account with the institution as described above.For example, some financial institutions may include the identificationdata after the prefix, some financial institutions may include theidentification data at the end or in the middle of the alpha-numericstring, and some financial institutions may intersperse theidentification data at certain locations throughout the alpha-numericstring. The AA transaction key and PIN are stored in a computer readablestorage medium along with the parameters of the P2P transaction receivedfrom computer 34, 54 or mobile financial transaction instrument 100-1.

FI 20-1 transmits the PIN to the mobile financial transaction instrument100-2 of the transferee. In some embodiments, the PIN is transmittedfrom FI 20-1 to mobile financial transaction instrument 100-2 via SMS,email, or another data transfer method. FI 20-1 also transmits thesingle-use AA transaction key to the computer 34, 54 or mobile financialtransaction instrument 100-1 of the transferor. The AA transaction keymay be transmitted via the HTTPS or otherwise encrypted connectionbetween FI 20-1 and computer 34, 54, or mobile financial transactioninstrument 100-1. At some time after the transferor has received thesingle-use AA transaction key from FI 20-1, the transferor transmits theAA transaction key from computer 34, 54 or mobile financial transactioninstrument 100-1 to the mobile financial transaction instrument 100-2 ofthe transferee. In some embodiments, the AA transaction key iswirelessly transferred via NFC, Bluetooth, or other short range wirelessprotocol. In some embodiments, the transferor may transmit the AAtransaction key via email, SMS message, or other data transfer method aswill be understood by one skilled in the art.

The P2P transaction continues when the transferee forwards the PINreceived from FI 20 of the transferor and the single-use transaction keyreceived from the computer 34, 54 or mobile financial transactioninstrument 100 of the transferor to the transferee's financialinstitution as illustrated in FIG. 6B. The PIN and AA transaction keymay be transmitted to the financial institution of the transferee fromthe mobile financial transaction instrument 100 used by the transfereevia an encrypted communication channel such as, for example, HTTPS orthe like.

Upon receiving the PIN and AA transaction key from mobile financialtransaction instrument 100-2, FI 20-2 may request routing informationfrom the TA Registry. The communication between FI 20-2 and TA Registrymay be via an HTTPS or otherwise encrypted communication channel. TARegistry provides FI 20-2 with the appropriate routing information basedon the request received from FI 20-2, which may include some or all ofthe characters of the AA transaction key. In some embodiments, FI 20-2may have the routing information for the transferor's financialinstitution locally saved in a non-transient computer readable storagemedium from which FI 20-2 may retrieve the routing information.

FI 20-2 receives/retrieves the routing information and transmits thesingle-use transaction key and PIN, which were stored in data storagedevices 26 of FI 20-2, to the transferor's financial institution 20-1.The transferor's financial institution 20-1 validates the single-use AAtransaction key and PIN and releases the funds from the wash account.The funds may be transferred from FI 20-1 to FI 20-2 via ACH, accounttransfer, or other method of fund transfer between financialinstitutions or within a financial institution as will be understood byone skilled in the art.

Turning now to the flow chart in FIG. 6C that illustrates one example ofthe functions performed by computer 34, 54 or mobile financialtransaction instrument 100-1 of the transferor during the P2Ptransaction illustrated in FIGS. 6A and 6B, computer 34, 54 or mobilefinancial transaction instrument 100-1 establishes a connection with FI20-1 using an encrypted communication protocol such as HTTPS at block602. The transferor may access a customer portal 28 of the transferor'sfinancial institution's website where the transferor inputs a usernameor customer ID along with a password. The access to the website may beprovided through a browser on computer 34, 54 or a mobile financialtransaction instrument 100-1 or through a mobile application that isdownloaded and installed on mobile financial transaction instrument100-1.

The transferor may use input device 128 to gain access to theappropriate GUI provided by the FI 20 for setting up a financialtransaction. Mobile financial transaction instrument 100-1 or computer34, 54 receives the parameters of the P2P transaction input by thetransferor using input device 128 at block 604, which are forwarded frommobile financial transaction instrument 100-1 or computer 34, 54 to thetransferor's financial institution at block 606.

At block 608, mobile financial transaction instrument 100-1 or computer34, 54 receives a unique AA transaction key for the P2P transaction. Theunique AA transaction key may be stored in a non-transient computerreadable storage medium by computer 34, 54 or mobile financialtransaction instrument 100-1 at block 610 for later transfer to themobile financial transaction instrument 100-2 of the transferee at block612. The AA transaction key may be transferred from computer 34, 54 ormobile financial transaction instrument 100-1 via a wireless transfer,such as NFC or Bluetooth, or the transfer may be made using anothertransmission protocol as will be understood by one skilled in the art.

One example of the functions performed by the transferor's financialinstitution during the P2P transaction illustrated in FIGS. 6A and 6B isshown in FIG. 6D. At block 622, a connection is established with thetransferor's mobile financial transaction instrument 100-1 or computer34, 54. The connection with mobile financial transaction instrument100-1 or computer 34, 54 may be established using HTTPS or anotherencrypted communication link. At block 624, FI 20-1 authenticates theuser by confirming that the username or customer number and passwordreceived from the transferor's mobile financial transaction instrument100- or computer 34, 54 correspond to the transferor's account with thefinancial institution.

FI 20-1 receives data defining a P2P transaction from mobile financialtransaction instrument 100-1 or computer 34, 54 at block 626. The datareceived from mobile financial transaction instrument 100-1 or computer34, 54 may include an amount of the transaction, an account of thetransferor that is to be involved in the transaction, and informationconcerning the transferee including, but not limited to, a phone numberor other unique identifier of the mobile financial transactioninstrument of the transferee (e.g., MAC address, IMSI, ESN, etc.), anemail address of the transferee, and a time period during which the fundtransfer may be performed.

The transferor's financial institution 20-1 prepares a unique,single-use AA transaction key and a PIN at block 628. The single-use AAtransaction key may be a random alpha-numeric key including one or morevalues that identify the financial institution that prepared the key. Insome embodiments, the AA transaction key may include one or moreportions that either identifies or is based on a user's account with theinstitution as described above. For example, some financial institutionsmay include the identification data after the prefix, some financialinstitutions may include the identification data at the end or in themiddle of the alpha-numeric string, and some financial institutions mayintersperse the identification data at certain locations throughout thealpha-numeric string. At block 630, the PIN and AA transaction key arestored in one or more data storage devices 26 for later use. Thetransferor's financial institution 20-1 may also store the parameters ofthe P2P transaction in one or more data storage devices 26 such that theP2P transaction parameters are associated with the PIN and AAtransaction key.

At block 632, the AA transaction key is transmitted to the computer 34,54 or mobile financial transaction instrument 100-1 of the transferor.The single-use AA transaction key may be transmitted to computer 34, 54of mobile financial transaction instrument 100-1 via a secure internetconnection using HTTPS or other encrypted communication channel. Thetransferor's financial institution 20-1 transmits a PIN to the financialtransaction device 100-2 of the transferee at block 634.

At block 636, the transferor's financial institution receives the AAtransaction key and PIN number from the transferee's financialinstitution. The AA transaction key and PIN may be received via anencrypted connection between the financial institutions. Thetransferor's financial institution determines if the transaction shouldbe approved at decision block 638. Determining if the P2P transactionshould be approved may include comparing the AA transaction key and PINreceived from the transferee's financial institution to copies of the AAtransaction key and PIN stored in one or more of the non-transient datastorage devices 26.

If the P2P transaction is declined at block 640, e.g., the AAtransaction key and PIN are not valid or have expired, then thetransferor's financial institution 20-1 may transmit a transactiondeclined message to the transferee's financial institution 20-2 at block642. The transferor's financial institution may also transfer the fundsfrom the wash account back into the transferor's account from which thefunds were originally deducted.

If the P2P transaction is approved at block 644, then the transferor'sfinancial institution 20-1 releases the funds from the wash account suchthat they may be deposited in the account of the transferee at thetransferee's financial institution at block 646. At block 648, thetransferor's FI 20-1 sends a message to the financial institution of thetransferee notifying FI 20-2 that the P2P transaction has been confirmedand the funds are available for transfer. The transfer of funds may beperformed using ACH, account transfer, or other form of fund transferfrom the transferor's financial institution to the financial institutionof the transferee, which may be the same financial institution ordifferent financial institutions as described above.

One example of the functions performed by the mobile financialtransaction instrument 100 of the transferee during the P2P transactionillustrated in FIGS. 6A and 6B are set forth in the flow diagram of FIG.6E. At block 662, the transferee logs onto a website of the transferee'sfinancial institution 20-2 using a browser or mobile applicationinstalled on the transferee's mobile financial transaction instrument100-2. The connection established between mobile financial transactioninstrument 100-2 and FI 20-2 may be an encrypted connection using HTTPSor other encryption technique. The mobile financial transactioninstrument 100-2 receives an input from transferee at block 664, whichresults in mobile financial transaction instrument 100-2 being placed ina receive mode. When placed in the receive mode, the mobile financialtransaction instrument 100 monitors its wireless transmission interfacefor a message to be received via a wireless communication protocol suchas NFC, Bluetooth, or the like.

At block 666, mobile financial transaction instrument 100-2 receives thePIN from the transferor's FI 20-2. The PIN may be received via SMS,email, or by way of another messaging methodology. Mobile financialtransaction instrument 100-2 receives the single-use AA transaction keyfrom the transferor's mobile financial transaction instrument 100-1 atblock 668. In some embodiments, the AA transaction key is received fromthe transferor's financial transaction key 100-1 via NFC, Bluetooth, orother wireless transmission protocol.

The AA transaction key and PIN may be temporarily stored in anon-transient computer readable storage medium, such as main memory 108and/or secondary memory 110, of mobile financial transaction instrument100-2 at block 670. At block 672, mobile financial transactioninstrument 100-2 transmits the transaction key and PIN to the financialinstitution of the transferee. The AA transaction key and PIN may betransmitted via a secure connection between mobile financial transactioninstrument 100-2 and FI 20-2. For example, the transaction key and PINmay be transmitted using HTTPS or other encrypted communication channel.

At block 674, mobile financial transaction instrument 100-2 receives amessage from the transferee's financial institution identifying if thefund transfer was successful. The message received from transferee's FI20-2 may be displayed to the transferee on display 106 of mobilefinancial transaction instrument 100-2 as will be understood by oneskilled in the art.

A flow chart demonstrating one example of the functions performed by thetransferee's financial institution during a P2P transaction inaccordance with the one illustrated in FIGS. 6A and 6B is provided inFIG. 6F. A connection is established between transferee's FI 20-2 andthe transferee's mobile financial transaction instrument 100-2 at block682 when the transferee logs onto a website of the transferee'sfinancial institution 20-2 using a browser or mobile applicationinstalled on the transferee's mobile financial transaction instrument100-2. Data is exchanged between FI 20-2 and mobile financialtransaction instrument 100-1 via an encrypted connection using HTTPS orother encryption technique.

At block 684, an AA transaction key and PIN are received from thetransferee's mobile financial transaction instrument 100-2. The AAtransaction key and PIN are received over the encrypted connectionbetween FI 20-2 and mobile financial transaction instrument 100-2. FI20-2 extracts the AA transaction key and PIN from the message receivedfrom mobile financial transaction instrument 100-1 and uses at leastsome of the received AA transaction key to request routing informationfrom the AA Registry or to retrieve routing information from anon-transient data storage device in order to transmit the transactionkey and PIN to the transferor's FI 20-1. For example, FI 20-2 maybifurcate the transaction key such that the first several characters areused for determining the routing information and the remainder of thetransaction key is stored in a non-volatile computer readable storagemedium.

The characters used for identifying the financial institution thatissued the AA transaction key are transmitted to the AA Registry in amessage requesting the appropriate routing information for routing thetransaction key or is retrieved from the computer readable storagemedium at block 686. At block 688, the transferee's financialinstitution transmits the AA transaction key and PIN to the transferor'sfinancial institution using the routing information received from the AARegistry or retrieved from the storage medium.

A message is received from the transferor's financial institution 20-1identifying if the transaction has been approved or declined at block690. The message received from the transferor's financial institutionmay be received via the same connection as the authorization requestmessage transmitted to FI 20-1 at block 688. The transferee's financialinstitution transmits a message to the mobile financial transactioninstrument 100-2 of the transferee indentifying if the transaction hasbeen approved or declined at block 692.

If the transaction is approved by the transferor's financialinstitution, then transferee's financial institution receives the fundsfrom the transferor's financial institution at block 694. The funds maybe received via ACH, account transfer, or other form of fund transferfrom the transferor's financial institution to the financial institutionof the transferee, which may be the same financial institution ordifferent financial institutions as described above.

The disclosed systems and methods described herein advantageously enablefinancial transactions to be implemented using unique, single-use AAtransaction keys that limit the risk of misappropriation and fraud sincethe transaction keys do not include static user account information.Consequently, the transmission of data during the financial transactiondoes not require high-level encryption as the transmitted messages ofthe transaction do not include personal account information that can bemisappropriated and used at a later time for fraudulent transactions. Inaddition to being used at online and brick-and-mortar merchants, thetransaction keys may be used at ATMs as well as for P2P and money wiringtransactions.

Although the systems and methods have been described in terms ofexemplary embodiments, they are not limited thereto. Rather, theappended claims should be construed broadly, to include other variantsand embodiments of the systems and methods, which may be made by thoseskilled in the art without departing from the scope and range ofequivalents of the systems and methods.

1. A method of performing a person-to-person financial transaction,comprising: receiving an active authentication transaction key at amobile financial transaction instrument of a transferor from a financialinstitution; storing the active authentication transaction key in anon-transient machine-readable storage medium of the mobile financialtransaction instrument of the transferor; and transferring the activeauthentication transaction key to a mobile financial transactioninstrument of a transferee for completion of the person-to-personfinancial transaction using wireless transmission.
 2. The method ofclaim 1, further comprising transmitting a request to transfer fundsfrom the mobile financial transaction instrument of the transferor tothe financial institution.
 3. The method of claim 2, wherein the activeauthentication transaction key is received in response to the request totransfer funds.
 4. The method of claim 2, wherein the request identifiesan account the transferor has with the financial institution from whichfunds are to be transferred.
 5. The method of claim 1, wherein theactive authentication transaction key includes at least one characterfor identifying the financial institution appended to a random alphanumeric string.
 6. The method of claim 5, wherein the activeauthentication transaction key does not include a static identifier foran account of the transferor with the financial institution.
 7. Themethod of claim 1, wherein the active authentication transaction key istransferred from the mobile financial transaction instrument of thetransferor to the mobile financial transaction instrument of thetransferee using near field communication.
 8. A system, comprising: anon-transient machine-readable storage medium; a first communicationinterface configured to receive an active authentication transaction keyfor performing a peer-to-peer financial transaction from a financialinstitution via a wireless network; a second communication interfaceconfigured to transmit and receive signals via a wireless transmissionprotocol; and a processor coupled to the non-transient machine-readablestorage medium and to the first and second communication interfaces, theprocessor configured to: store the active authentication transaction keyin the non-transient machine-readable storage medium, and cause thesecond communication interface to transmit the active authenticationtransaction key to a mobile financial transaction instrument of atransferee for use in completing the peer-to-peer financial transactionvia the wireless transmission protocol.
 9. The system of claim 8,wherein the first communication interface is configured to receive theactive authentication transaction key from the financial institution inresponse to transmitting a request to perform the peer-to-peer financialtransaction to the financial institution.
 10. The system of claim 9,wherein the request identifies an account the transferor has with thefinancial institution from which funds for the peer-to-peer financialtransaction are to be sourced.
 11. The system of claim 8, wherein theactive authentication transaction key includes at least one characterfor identifying the financial institution and a random alpha numericstring.
 12. The system of claim 11, wherein the active authenticationtransaction key does not include a static identifier for an account thetransferor has with the financial institution.
 13. The system of claim8, wherein the second communication interface uses near fieldcommunication to transfer the active authentication transaction key tothe mobile financial transaction instrument of the transferee.
 14. Thesystem of claim 8, wherein the first communication interface isconfigured to transfer and receive signals using radio frequency.
 15. Anon-transient machine-readable storage medium encoded with program code,wherein when the program code is executed by a processor, the processorperforms a method comprising the steps of: storing an activeauthentication transaction key for performing a peer-to-peer financialtransaction received from a financial institution via firstcommunication interface in a non-transient machine-readable storagemedium; and causing a second communication interface to transmit theactive authentication transaction key to a mobile financial transactioninstrument of a transferee for completing the peer-to-peer financialtransaction via a wireless transmission protocol.
 16. The non-transientmachine readable storage medium of claim 15, wherein the firstcommunication interface receives the active authentication transactionkey from the financial institution in response to transmitting a requestto perform the peer-to-peer financial transaction to the financialinstitution.
 17. The non-transient machine-readable storage medium ofclaim 16, wherein the request identifies an account a transferor haswith the financial institution from which funds for the peer-to-peerfinancial transaction are to be sourced.
 18. The non-transientmachine-readable storage medium of claim 15, wherein the activeauthentication transaction key includes at least one character foridentifying the financial institution and a random alpha numeric string.19. The non-transient machine-readable storage medium of claim 18,wherein the active authentication transaction key does not include astatic identifier for an account a transferor has with the financialinstitution.
 20. The non-transient machine-readable storage medium ofclaim 15, wherein the second communication interface uses near fieldcommunication to transfer the active authentication transaction key tothe mobile financial transaction instrument of the transferee.
 21. Thenon-transient machine-readable storage medium of claim 15, wherein thefirst communication interface is configured to transfer and receivesignals using radio frequency.